What if Uncle Sam takes over your bank?

Staff Report
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Jan 22, 2009 at 12:00 AM

The Wall Street Journal is offering its readers a primer on bank collapses and the impact of possible bank nationalization.The primer comes with the latest wave of banking problems which has investors worried that the government will nationalize deeply wounded institutions, such as Bank of America Corp. and Citigroup Inc.Such a dramatic step could make it easier for some bank customers to get a loan. And customers with deposits will still be protected by federal insurance, just as they are today. Still, consumers could see more branch closings, more standardization across bank products and a deterioration in customer service. Common and preferred shareholders, meanwhile, will likely get wiped out in a bank nationalization.